Clean Seed Capital Group Signs Memorandum of Understanding to acquire a controlling interest in the 3rd largest Agro-Processing Company in Ghana, Africa.
April 12, 2012 – Vancouver, British Columbia – Clean Seed Capital Group (“Clean Seed” or the “Company”) (TSX-V: CSX) is pleased to announce that it’s recent trip to Ghana has resulted in the signing of a Memorandum of Understanding (“MOU”) with 3K&A Industries Limited (“3K&A”), a private agroprocessing company based in Ghana, Africa.
Both the Company and 3K&A wish to collaborate together to achieve their mutual objectives in establishing an integrated sustainable agriculture program in Ghana, incorporating commercial No-Till farming, agro-processing (vegetable oil, seed cake, poultry feed and other ancillary products) and the deployment of the Company’s proprietary No-Till farming equipment. The Company is currently preparing a formal agreement that will specifically outline the details of the MOU and anticipates fulfilling the final document in the near future.
Under the terms of the MOU, the Company intends to acquire a 60% controlling interest in 3K&A through a combination of equity and debt financing, in the amount of US$1,500,000. 3K&A would then be branded as Clean Seed Africa Ghana Ltd (“CSAG”). The funds, in part, will be used to upgrade and expand the existing infrastructure of 3K&A and begin the implementation of commercial No-Till agriculture and land restoration initiatives in Ghana.
3K&A Industries Ltd. is an agro-processing company that commenced operations in April 2006 and is the 3rd largest producer in the country, located near Kumasi in the Ashanti Region of Ghana, Africa. It currently operates a soy vegetable oil mill with a total designed capacity of 48 metric tonnes of raw material per day. In addition, the company operates an 18tpd (tonnes per day) Soy vegetable oil refinery.
About Clean Seed Capital Group Ltd.: Clean Seed has developed an advanced No-Till precision planting system comprised of individually patented technologies. These technologies include all-cast opener assembly systems, in-ground openers, proprietary seed and fertilizer metering and electronic control systems that together combat soil erosion, reduce seed and fertilizer use and nurture the subsurface biodiversity vital to producing healthy and sustainable crops.
Clean Seed Capital is at the forefront of an ecological movement that strives to balance productivity with sustainability. Our company is uniquely positioned to contribute to and benefit from a rapidly emerging market opportunity in the sustainable agricultural sector. Our primary initiative is predicated on identifying solution-driven, sustainable, environmentally responsible, agricultural-based companies that need a strategic partner to facilitate progress.
The proposed transaction with 3K&A is subject to finalizing a formal agreement, Exchange approval, and the Company raising the necessary financing.
On Behalf of the Board,
Clean Seed Capital Group
Chief Executive Officer, President and Director
Not for distribution in the United States. This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities of the Company in any jurisdiction. None of the Company’s securities are registered under the United States Securities Act of 1933, as amended (the “1933 Act”), or the securities laws of any states of the United States, and may not be offered or sold in the United States absent registration or an applicable exemption therefrom under the 1933 Act and the securities laws of all applicable states.